CFD Trading: Cocoa

Cocoa is a commodity; the most production is from Africa but new market as China and India are up-coming markets.

Cocoa is used in chocolate and related products.

In recent years are the interest on chocolate and health increasing.

Pricing

The price on the global market is volatility; in the African nations is the price fixed to protect the farmers and to improve the quality of the cocoa production.

The Fixed price is called fair-trade; a fair-trade price is a fixed price plus a premium; is the global price lower than the fair-trade price are the farmers paid the fair-trade price; is the global price higher than the fair-trade price are the farmers paid the global price plus the premium.

The price volatility between 2011 and 2014

The price of cocoa has between 2011 and 2014 been among 2575 and 2925 dollars.

CFD trading and cocoa

Cocoa is in the section commodity on the online trading platforms; in the last year has the price been among 2700 and 2900 dollars. Is means that each contract is worth as an example 2900 dollars if the price is 2900 dollars.

CFD is a leveraged product which means that an investment in a cocoa contract only cost 29 dollars if the price is 2900 dollars on each contract. 

CFD Trading: Cotton

Cotton is a commodity and is used in the fashion industry to produce close etc.

How is the price set in the cotton market?

The price is set by demand and supply; but there are restrictions in the market price.

Government policies

One restriction is government policies; in China is the cotton brought by the government at a fixed price and sold at a lower price.

The price of cotton produced in China is higher than the world price.

The world price is set by local prices; the local prices differ from one country to another country.

The price on cotton and competitive products

Another restriction is the price and competitive products; if the price for cotton is high the farmers will produce cotton; as the price is set by demand and supply; the price will start to fall cause to the higher rate of farmers producing cotton; the lower price of cotton makes another product more profitable to produce and the production of cotton will fall and the price of cotton will start to increase.

Analyzing the price chart for cotton

The price for cotton has been falling since February 2011; the reason is the production of cotton has been high. At the present is the market not short on cotton.

CFD Trading and Cotton

Cotton is in the section commodity on the online trading platform; the price range has the last year been among 95 and 86 dollars.

Charts: Tools to Analyzing the Currency Curve

I was on the eToro blog and read about their new chart service.

Some of the services a lot of traders are interested in are to draw a line from one point to another or set the Fibonacci levels in the chart; these two examples are services eToro offer.

On the eToro blog in the post “Have you seen our new Charts?” is a video illustrating the new service.

CFD: Bitcoin

Bitcoin is a digital coin; the coin is also a CFD instrument on the trading platforms.  

On my website about the social investment network is a link to eToro about the Bitcoin; they explain the coin and how to invest in Bitcoins at the social investment trading platform.

On my website is the link in the list “Latest Updates”; the 13 of January (the Bitcoin has arrived!).

CFD Trading: Natural Gas

Natural gas

Natural gas is an energy source; it is used; amongst others for electricity and fuel.

Measured in

Natural gas is measured in cubic meters.

Pricing

The price for natural gas is given by demand and supply.

The price is affected by the weather as the demand for natural gas is rising in the coldest months of the year; around December and February.

The price is also affected by the economy; in the short run; the demand for natural gas will rise when the economy blooms; in the short run the demand will fall when the economy is in a recession.

The price is also affected by competitions from other energy sources; if the price for natural gas is getting too high the consumer of natural gas may switch to other energy sources.

CFD Trading and natural gas  

On the CFD trading platforms is natural gas in the section commodities.

The price fall from 13,527 in June 2008 to 2,75 in August 2009; From 2009 to 2014 has the price been between 5,8 and 1,927; Monday the 13 2014 is the price 4,12.

The most common trading method; trading CFD; is probably the use of both indicators and fundamental analyses.

CFD Trading: Sugar

Sugar is a commodity; the largest producer in the world is Brazil.  

Sugar production

Sugar is produced as sugar cane or sugar beet; sugar cane is produced in countries where the weather is hot and the sugar beet is produced in countries where the weather is colder.  

Sugar and Price

The percentage of sugar from the sugar cane and beet is depending on the weather which makes the weather a factor in the price development.

The price tent to rise from July/August to the sugar beet harvested; harvested is from late September to November). The reason is the supply on the market is short

In the last couple of years has the price decreased; it is appropriately half of what is was in 2011.

Sugar and CFD trading

Sugar is a commodity on the trading platforms; at one of the platforms is sugar the 9 January 2014 bought at 15,52 and sold at 15;48; the difference between buy and sell is small; only 4 pips.

Spread between the Buying and Selling Price

Correlation between currency pairs, price developments and indicators are thought a trader has to give consideration to.

Another consideration in trading currencies is the spread between the buying price and the selling price.

Purpose of this post

The purpose is to give some examples and a general idea of currency pairs with different spreads.

The content is only illustrative.

What is a spread between the buying and selling price

A spread is the pips between the price the currency pairs are brought at and the price they are sold at.

Why look at the spread

The wider the spread is the longer it will take to get profit.

Currency pairs with different spreads

Examples of different currency pairs with different spreads; the prices and the spreads are from the 18 of December 2013 from one of the trading platforms; the spreads could vary from other trading platforms.

Currency pairs with a 2 pips spread

EUR/USD	1,3741	1,3743
AUD/USD	0,8904	0,8906
USD/JYP	103,06	103,08

Currency pairs with a 3 pips spread

EUR/JYP	141,60	141,63
NZD/USD	0,8246	0,8249

Currency pairs with a 4 pips spread

EUR/CHF	1,2205	1,2209
EUR/AUD	1,5430	1,5434
USD/CHF	0,8880	0,8884
GBP/USD	1,6376	1,6380

Currency pairs with a 5 pips spread

USD/CAD

1,0642

1,0647

Trading Gold

The posts on this blog have been about trading currency pairs; in this post is the content about commodities. The commodity is gold.

Gold

Gold is a commodity and the most of it comes from India and is used in jewelry and industries.

Impact on the price of gold

Industries

The demand and supply of these industries have an impact on the pricing.

Big events

Big events as the Indian wedding seasons (from September to December) have also impact on the price.

The dollar, inflation and interest rate

The price of gold is valued in dollars which makes the price of the dollar an element in the pricing. As currencies are influenced by the inflation rate and the interest rate are they also factors that influence the price of gold.   

The inflation is measured by the consumer price index (CPI); if the inflation starts to rise the impact of the gold price is negative which means that the price will fall on gold.

Before starting to hedge gold and inflation it would be a good idea to know the inflation rate around the world as the inflation's impact on the gold is not equivalent cause to the calculation of the inflation rate.

The price of gold

The price of gold in 2013 has been bearish; as it is decreased from 1.780 dollars in October 2012 to 1.230 in December 2013.

In the short run gold has been bullish and bearish.

How to buy gold

Gold can be brought on an online CFD trading platform; gold is placed under the section commodities.

More about how to trade on an online trading platform is illustrated in the video on my website.  

Trading CFD: Correlation between AUD/CHF, AUD/USD and EUR/USD

In the post CFD Trading: Correlation between Currency Pairs is written about some common correlation between currency pairs.

In this post

In this post is the focus on the correlation between the AUD/CHF and AUD/USD. The correlation between the AUD/CHF and the EUR/USD is also illustrated.

The purpose is illustrative only.

Correlation

The correlation between currency pairs can be stronger or weaker over a time period. 

In this post is illustrated how the correlation is at the 15 minute charts; the correlation could be stronger or weaker if the correlation was illustrated in charts where the time period was longer or shorter.

Often is the correlation strong or weak as illustrated. The correlation can also be opposite as illustrated in the charts from 10:45.

The correlation between AUD/CHF and AUD/USD

The charts illustrate the correlation between the AUD/CHF and AUD/USD; the charts illustrate a positive correlation between the currency pairs.

The correlation is weaker at 10:45 than it was between 1:45 and 10:45 as the AUD/CHF is decreasing and the AUD/USD becomes flatter.

The correlation between AUD/CHF and EUR/USD

The charts illustrate the correlation between the AUD/CHF and EUR/USD; the charts illustrate a negative correlation between the currency pairs.

The correlation is weaker at 12:30 than it was between 1:45 and 10:45 as the AUD/CHF is increasing and the AUD/USD is increasing.